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HRA > Rent paid

narendra khandelwal (service) (204 Points)

07 October 2008

can a employee claim HRA exemption even if HRA received is more than Rent PAID?

for example:

basic pay 20000

HRA 50% 10000

CA 800

other Allow 1200

total salary 32000 pm.

rent paid 7000 pm

place chennai

Exempted HRA: least of following i.e.60000

a. HRA Received 10000*12=120000

b. rent paid-10% Salary (7000*12)-10% of 240000 = 60000

c. 50% of 240000 = 120000

is above calculation is correct.

can deptt. may ask questioned employer for excess HRA over rent paid

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7 Replies

Brijesh Upadhyay (Practicing Chartered Accountan) (31 Points)
Replied 07 October 2008

yes, employee can claim HRA even if it is more than its actual rent expense. Department can never ask why salary is structured in particular way by the company?

RAVI KUMAR M (CHARTERED ACCOUNTANT) (66 Points)
Replied 07 October 2008

Can be claimed. The Department has no locus standi on the structuring of salary

CA Rachit K Patel (Chartered Accountant) (1503 Points)
Replied 08 October 2008

hi,

yes employee can claim the hra in excess of rent paid.Your calculation is for hra is correct.Department has no reight to question why you have paid such excess rent etc, etc......

bye.

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 08 October 2008

yes he can claim

DHARMENDER (PCC) (28 Points)
Replied 11 October 2008

Originally posted by :narendra khandelwal
"	can a employee claim HRA exemption even if HRA received is more than Rent PAID? for example: basic pay 20000 HRA 50% 10000 CA 800 other Allow 1200 total salary 32000 pm. rent paid 7000 pm place chennai Exempted HRA: least of following i.e.60000 a. HRA Received 1000012=120000 b. rent paid-10% Salary (700012)-10% of 240000 = 60000 c. 50% of 240000 = 120000 is above calculation is correct. can deptt. may ask questioned employer for excess HRA over rent paid	"

Hello sir,

your calculation is right. If Your statement true, then you must take the rent slip from owner. by reciept ticket.. then you take easilytake this deduction. easily examption.u/s 10 (13)A

DHARMENDER (PCC) (28 Points)
Replied 11 October 2008

Originally posted by :narendra khandelwal
"	can a employee claim HRA exemption even if HRA received is more than Rent PAID? for example: basic pay 20000 HRA 50% 10000 CA 800 other Allow 1200 total salary 32000 pm. rent paid 7000 pm place chennai Exempted HRA: least of following i.e.60000 a. HRA Received 1000012=120000 b. rent paid-10% Salary (700012)-10% of 240000 = 60000 c. 50% of 240000 = 120000 is above calculation is correct. can deptt. may ask questioned employer for excess HRA over rent paid	"

Hello sir,

your calculation is right. If Your statement true, then you must take the rent slip from owner. by reciept ticket.. then you take easily take this Exemption (13)A

(Guest)

Is registration of Leave and License agreement compulsory, for getting the HRA benefit (if yes the relevant rule or section). or it is fine if the same is stamped and PAN no. of the landloard is given.